Apple may give majority of its A9 chip business to TSMC instead of Samsung


Everyone wave bye-bye to Samsung!

Samsung might finally be kicked the curb when it comes to who gets the lion’s share of Apple’s chipmaking business. According to analysts Olivia and Rick Hsu from Daiwa Securities, Taiwan Semiconductor Manufacturing Co. (TSMC) is likely to snap up 70 percent of all Apple’s A9 and A9X orders, leaving rival chipmaker Samsung out in the (relative) cold.

The reason for this is reportedly the “superior yield” and “manufacturing excellence in mass-production” exhibited by TSMC, which will get it a large percentage of the A9 orders, and all of the A9x orders for the next generation iPad.

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Knowing how much is at stake, things can get pretty vicious when you’re a manufacturer with a shot at providing Apple with vital components for its next generation iPhone.

We’ve known for some time that Taiwan Semiconductor Manufacturing Co. and Samsung have been battling it out over who gets picked by Apple to make its forthcoming A9 processors — with Samsung apparently having the advantage currently, due to offering Apple a better deal financially.

TSMC isn’t taking this lying down, however. In fact, the company is currently suing an ex-employee who allegedly leaked R&D secrets to Samsung; thereby allowing it to both catch up in the chip fabrication business.

TSMC will likely get golden ticket as Apple’s main A9 chip supplier


Gene testing, coming soon to an iPhone near you. Photo: Jim Merithew/Cult of Mac
The next iPhone's processor will be made in Taiwan. Photo: Jim Merithew/Cult of Mac

The iPhone 6 has barely been on the market for three months but the iPhone 6S rumor mill is starting to heat up with a battle brewing between Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung to become the main supplier of the next-gen A9 processors.

Last month a Digitimes rumor claimed Samsung already locked up A9 chip production, but according to the Taipei Times, TSMC will continue to be the main supplier of Apple’s processors slated to the next generation of iPhones and iPads in 2015.

Researchers at the Market Intelligence and Consulting Institute (MIC) say that while the two companies have similar capabilities, TSMC is poised to win the order thanks to it’s better yields.